July 7, 2008

   

Brazil's inflation rises

High commodity prices pressuring Brazilian consumers.

 

Brazil's largest city, Sao Paulo, saw inflation rising 2.42 percent over the past four weeks, the Agriculture Economy Institute of the Sao Paulo state Agriculture Department said Friday (July 4, 2008).

 

More importantly, animal proteins, rose 9.35 percent over the period.

 

However, grain and oilseed prices fell slightly overall by 0.35 percent.

 

Food prices are making it harder for Brazil's Central Bank to meet its year-end inflation target of 4.5 percent. Inflation for 12 months running is currently 5.89 percent, according to the central bank.

 

Beef prices rose 12.4 percent to BRL88.10 per 15 kilogrammes, followed by chicken prices rising 9.8 percent to BRL1.77 per kilogramme.

 

The rise in prices is sparked by a lower supply of slaughter cattle.

 

Grain price inflation has declined somewhat, with corn prices down 4.76 percent to 22.44 Brazilian reals per 60-kilogramme bag, and wheat prices down 4.7 percent to BRL44.45 per bag.

 

Rising prices of food commodities have increased farmers' incomes, the Institute's agronomists said in its report Friday (July 6, 2008).

  

(US$1=BRL1.6)